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Africa

A Step Toward Formalization: The Charter for Cross-Border Traders

Carmine Soprano's picture

Women carrying firewood to sell at a local market in Kaduna, Nigeria. Photo - ©IFPRI/Ian Masias.If you are woman in Sub-Saharan Africa and you live and work in a rural area, you are probably a trader. You are likely to be carrying a variety of goods across the border several times per day or week, and to rely on that as a major source of income to your household. You’re probably facing high duties, complex procedures, and corrupted officials at the border – the latter, in some cases, might want to harass you before they let you go through.  You may not be able to read or understand what duties apply to the goods you are trading. In this scenario, what is your incentive to go through the formal border post?

It’s probably easier, cheaper, and faster to cross the border informally.

Competitiveness is Key to Trade and Development in Africa

Anabel Gonzalez's picture
Textile factories are an important source of employment in Lesotho, which benefits from the AGOA agreement. Photo credit: John Hogg / World Bank. As World Bank President Jim Kim told the African leaders who gathered in Washington for the U.S.-Africa Leaders Summit this week: African countries have enormous potential to increase trade, drive growth, reduce poverty, and deliver jobs. They face constraints, to be sure, but the World Bank Group is working with our African partners daily to improve the competitiveness of their industries and boost the volume and diversity of their trade with the rest of the world.

At a high-level meeting at the World Bank on Monday, African ministers and delegations representing 51 countries had a pressing concern: the renewal and modernization of the African Growth and Opportunity Act (AGOA). A preferential program that enhances the access of qualifying African countries to the US market, the law is due to expire in September 2015.

What Will the Trade Facilitation Agreement Mean for the Aid for Trade Agenda? New e-Book Provides Answers

Jaime de Melo's picture

The world’s 45 Least Developed Countries that are not oil producers (non-oil LDCs) are exporting less and less in the global market place. Between 1985 and 2012, the world market share of non-oil LDCs’ exports of goods and services fell from 1.2 percent to 0.8 percent—all while their share in world population rose from 7.5 percent to 9.9 percent.

The 2005 Aid for Trade (AFT) initiative was designed to arrest this decline. Yet, LDCs’ trade costs continue to fall less rapidly than those of their competitors.

Clearly, it’s time to re-evaluate the AFT initiative.

A new e-book does just that, and, contrary to what some may think, concludes that the initiative has been beneficial. But due to a collective failure to clearly articulate its results, the achievements of the AFT initiative are now at risk as development budgets come under increasing pressure.

Resilience vs. Vulnerability in African Drylands

Paul Brenton's picture
Woman carries wood in Ouagadougou, Burkina Faso. Source- Guillaume Colin & Pauline Penot

It’s 38°C (99°F) in Ouagadougou, the capitol city of Burkina Faso, today—and it’s been this hot all week. The end of the warm season is near, but in places like Ouaga (pronounced WAH-ga, as its better known), temperatures stay high year-round. These are the African drylands: hot, arid, and vulnerable.

Over 40 percent of the African continent is classified as drylands, and it is home to over 325 million people. For millennia, the people of these regions have adapted to conditions of permanent water scarcity, erratic precipitation patterns, and the constant threat of drought. But while urban centers like Cairo and Johannesburg have managed to thrive under these harsh conditions, others have remained mired in low productivity and widespread poverty. 

The World Bank has been partnering with a team of regional and international agencies to prepare a major study on policies, programs, and projects to reduce the vulnerability and enhance the resilience of populations living in drylands regions of Sub-Saharan Africa.

Eliminating Customs of Corruption: New Approaches in Cameroon & Afghanistan

Gerard McLinden's picture

Corruption continues to plague customs administrations around the world regardless of their level of development and despite intense public attention.

Recent high profile cases in many first world countries reinforce what we always knew—that no country is immune, and that there are no quick fix solutions available. The very nature of customs work makes it vulnerable to many forms of corruption, from the payment of informal facilitation fees to large scale fraud and other serious criminal activities.

But this blanket generalization belies some genuine progress in countries where reforms are making a measurable impact on operational effectiveness and integrity. 
 

How Social Connections and Business Ties Can Boost Trade: An Application of Social Network Analysis

Anasuya Raj's picture

The Nigerien city of Gaya is booming. Sitting on the banks of the Niger River not far from the borders of Benin and Nigeria, Gaya has grown from a quiet village to a hopping new hub. Its population is five times what it was just a few decades ago. So what has Gaya on the go? 

To some extent, it's a trade story. Price differences across its nearby borders, helped by a ban on imports of second-hand clothes in Nigeria, and an avoidance of tax collection by customs officials have all been important factors in explaining the boom of trade in the region. Yet, combining these with an analysis of the development of transnational networks gives a more complete picture.

This is where Social Network Analysis sheds new light on the story of Gaya, by looking at these interactions to help improve our understanding of the dynamics involved.
 

A Portal to Greater South/South Cooperation

Richard Record's picture

 Kingdom of LesothoHere at the World Bank we put great effort into facilitating South-South exchanges. But the truth is that developing tangible results and sustainable partnerships are still tremendous challenges. That’s why when a genuine, substantive example of South-South cooperation comes along—as is the case with the new Lesotho Trade Portal (LTP)—this effort should rightly be praised.

The LTP—billed as “the first trade portal in Africa”—was developed through a bilateral agreement between the Kingdom of Lesotho and the government of Lao People’s Democratic Republic, with the assistance of the World Bank Group. The LTP is a single, online source for all trade-related laws, regulations, and procedures for importing and exporting. It was officially launched on March 26, 2014, immediately establishing a new standard in Africa for communication with traders.
 

A Fragile Country Tale: Restrictions, Trade Deficits, and Aid Dependence

Massimiliano Calì's picture

 Masaru Goto, World BankPart of the World Bank’s new vision is to step up its efforts to help fragile and conflict-afflicted states break the vicious cycle of poverty. But this is no easy task.
 
The destruction of productive assets and the restrictions on the capacity to produce are among the most severe economic impacts of conflicts and fragility. These effects explain why countries in conflict or emerging out of conflict typically have very large trade deficits. The productive sector is often particularly weak by international standards, so exports are low and domestic consumption has to rely on imports. Indeed, five of the ten countries with the largest trade deficit in the world (Timor-Leste, Liberia, the Palestinian territories, Kosovo and Haiti) are considered fragile by the World Bank and other regional development banks (figure 1).
 

Women and Trade in Africa: Essential to the Continent's Success

Catherine Sear's picture
New Short Film: "Mind the Gap: Gender Equality and Trade in Africa"


Women in Africa participate in trade in many ways. They are informal cross-border traders. They produce traded goods and services. They are rural farmers and they are professionals, providing legal and accountancy services. Many are also entrepreneurs with dominant ownership of exporting companies. Women are—and will be—essential to the continent’s success in the global marketplace.
 

Notes From the Field: A Pot of Money to Help Countries Trade

Julia Oliver's picture

About "Notes From the Field": With this occasional feature, we let World Bank professionals who are conducting interesting trade-related projects around the globe explain some of the challenges and triumphs of their day-to-day work. The views expressed here are personal and should not be attributed to the World Bank. All interviews have been edited for clarity.

Ian Gillson. Source - World Bank.The interview below was conducted with Ian Gillson, a Senior Trade Economist in the World Bank’s Poverty Reduction and Economic Management (PREM) network. Before coming to the World Bank’s headquarters in Washington, D.C., Mr. Gillson worked in Malawi and the United Kingdom on issues surrounding preferential trade between developed and developing countries, trade-related taxation systems, trade in services and agricultural trade. He spoke with us about his work managing a World Bank trust fund that supports trade-related assistance to poor countries around the globe.

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